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FSA warns comparison sites over permissions

by: Mortgage Solutions
  • 08/06/2011
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FSA warns comparison sites over permissions
The Financial Services Authority (FSA) has written to price comparison websites urging them to ensure they comply with regulation.

The letter contained proposed guidance and highlighted concerns about a lack of permissions held by firms operating sites.

The regulator reminded firms to check they hold the correct permissions for their activities and ensure they have not been giving regulated advice without authorisation.

The FSA said firms using the comparison tools of a third party, called “white label” services, must make clear to customers which firm they are actually dealing with and who to complain to.

It also urged firms to check the permissions held by the provider of comparison tools.

The regulator asked firms operating comparison sites to take responsibility for customer disclosure, rather than placing all responsibility for this on the individual.

Firms have until 8 August 2011 to respond to the proposed guidance accompanying the letter.

Eric Galbraith, BIBA chief executive, said: “Our concerns from 2008 have focused on the gap developing between the pace of technological change and the regulations which were written in 2005. We are pleased that the FSA recognise the price comparison website activities to be more than simply introducing and we trust that the steps that they are taking will close this gap.”

Graeme Trudgill, BIBA head of corporate affairs, also insists that the FSA’s recommendations should be implemented without delay.

“For the FSA to say that comparison websites are falling short of their regulatory requirements is of great concern and we strongly welcome its proposed guidance for these websites.”

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